HOA & Condo
How does an HOA or condo association collect from a delinquent owner?
Written notice and demand, then late fees and interest under the governing-document schedule, then recording an assessment lien under the relevant statute, then judicial foreclosure if unpaid. Most matters resolve before foreclosure becomes necessary.
Both Alabama and Florida provide statutory frameworks for HOA and condominium-association assessment collection. The structure is similar in both states; the details differ.
Step 1 — Notice and demand.
Send a written demand identifying the delinquent assessment, the late fees and interest accrued under the governing-document schedule, and a cure deadline. Document delivery (certified mail, with return receipt). Many owners pay at this stage.
Step 2 — Record the assessment lien.
If the owner doesn't pay, record an assessment lien under the relevant statute:
- Alabama condominium: Ala. Code § 35-8A-316
- Alabama HOA: Ala. Code § 35-20-12
- Florida condominium: Fla. Stat. § 718.116
- Florida HOA: Fla. Stat. § 720.3085
The lien attaches to the unit/lot and survives transfer subject to first-mortgage priority and any statutory safe-harbor provisions.
Step 3 — Foreclose if necessary.
Foreclosure of an assessment lien is judicial in both jurisdictions and requires careful procedural compliance. The recorded notice must precisely identify the secured amount; the foreclosure complaint must allege the statutory elements; service must follow the local rules. A procedural slip can wipe out a foreclosure and force restart.
First-mortgage safe harbor.
When a first-mortgage lender forecloses, statutory safe-harbor provisions can cap the post-foreclosure assessment liability. We factor that into the collection strategy from the start — pursuing aggressive collection on a parcel where the mortgage is also in default may not produce the best recovery for the association.
For more on collection strategy, see our HOA & Condominium practice.